Pair trading

[sungtaeyoo]

Hi, as far as I understand, strategy developed with NT is for single stock, future or etc. Am I wrong? It is possible to write strategy to do pair trading?

[NinjaTrader_RyanO]

Hi sungtaeyoo,

Thank you for your post.

An ATM strategy would be applicable to one instrument only at a time, but it would be possible to develop a strategy that you could save as a template, and then apply to other instruments. More information at:
http://www.ninjatrader.com/support/helpGuides/nt7/index.html?manage_atm_strategy_templates.htm

As far as pairs trading this would be possible with forex pairs, since those act as individual symbols in NinjaTrader, but if you are referring to other pair types then can you please clarify so that we can confirm.

[MarkCurry70]

Hey Ryan, I'm very new to your site and would like to start of with something familiar to my trading style. Has there been any update to what sung had mentioned? In particular, I'd like to start running basic "pairs" / stat arb backtests between 2 equities. Ex. KO vs PEP, and adding layers (dollar neutral) at specific Standard Deviations from their divergences. Has this been configured in NT7? and if so, can you point me in the right direction of where to begin? thx

Hi sungtaeyoo,

Thank you for your post.

An ATM strategy would be applicable to one instrument only at a time, but it would be possible to develop a strategy that you could save as a template, and then apply to other instruments. More information at:
http://www.ninjatrader.com/support/helpGuides/nt7/index.html?manage_atm_strategy_templates.htm

As far as pairs trading this would be possible with forex pairs, since those act as individual symbols in NinjaTrader, but if you are referring to other pair types then can you please clarify so that we can confirm.

[NinjaTrader_RyanO]

Hi Mark,

Thank you for your post and welcome the forum.

With NinjaTrader, though you can not presently chart the difference between stocks you could create a chart with both instruments applied, which is possible by adding multiple data series to a chart:
http://www.ninjatrader.com/support/helpGuides/nt7/index.html?working_with_price_data.htm

Then you can add indicators to the same chart window with each instrument so that you can compare the values:
http://www.ninjatrader.com/support/helpGuides/nt7/index.html?working_with_indicators.htm

Using those charting items in NinjaTrader will allow you to view historic data from the instruments along with any values you derive from indicators or objects.

It may not be exactly what you are seeking but if you send an email to support[at]ninjatrader[dot]com and reference this thread and provide a number to reach you I can work remotely to answer any questions you may have if I have misunderstood exactly what you would like to do.